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Impact of the National Pension Fund on the Suitability of Elderly Pensions in Thailand

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  • Wade D. Pfau
  • Vararat Atisophon

Abstract

This study combines a traditional hypothetical worker approach with the techniques of stochastic forecasting to provide a better sense about the suitability of the pension system for formal sector private workers in Thailand. With regard to the proposed defined-contribution pension, we find that workers with a 40-year career can only expect a median replacement rate of approximately 13-14�percent of their final 5�years of income. Most of the pension benefits will still likely come from the unsustainable defined-benefit pension system and further reforms will be needed to maintain suitable pensions. Copyright 2009 The Authors. Journal compilation 2009 East Asian Economic Association and Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 23 (2009)
Issue (Month): 1 (03)
Pages: 41-63

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Handle: RePEc:bla:asiaec:v:23:y:2009:i:1:p:41-63

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